Collecting money for products or services which you’ve provided can often be a daunting task. While many companies have a collection plan in place, they might not review their plan enough. Incorporating new ideas and strategies can increase the likelihood of being paid by vendors, so it can hurt to have a stale collection plan.
Take control of your accounts receivable management by reviewing your policies every few months to a year. An important factor to consider is how often your company contacts a vendor about an outstanding balance, whether this is by letter, email, phone call or even personal visit.
Review your collection plan at certain intervals to ensure you’re putting yourself in the best position to collect money from your debtors on time.